Is the bubble rotating into equities?

[blazespinnaker]

So the housing market is deflating .. is it just rotating back into equities? The recent run up makes me wonder if that's where people are putting all their RE bubble money.

[Finster]

Re: Is the bubble rotating into equities?

So the housing market is deflating .. is it just rotating back into equities? The recent run up makes me wonder if that's where people are putting all their RE bubble money.

Equities are probably playing catch-up to the recent bond market rally. That bond market rally, in turn, probably owes to the latest surge in the US trade deficit. When all those dollars pour forth over the globe, the exporting countries have to do something with them, and one of their favorite targets is the US bond market.

[jk]

Re: Is the bubble rotating into equities?

we're also in the no news period after last quarter's earnings announcements and prior to this quarter's pre-announcements. traditionally a time to party.

[the Hobbit]

Re: Is the bubble rotating into equities?

So the housing market is deflating .. is it just rotating back into equities? The recent run up makes me wonder if that's where people are putting all their RE bubble money.

Bart has also indicated that Bernanke was providing additional liquidity via Repos and TIO. This "hot money" has found its way to the equities, hence the current rally. This may be politically motivated to paper over the economic dislocations we face until after the election. The PTB deign to keep us dumb fat and happy -at least until the votes are counted.

[jk]

Re: Is the bubble rotating into equities?

Bart has also indicated that Bernanke was providing additional liquidity via Repos and TIO. This "hot money" has found its way to the equities, hence the current rally. This may be politically motivated to paper over the economic dislocations we face until after the election. The PTB deign to keep us dumb fat and happy -at least until the votes are counted.

i note that oil/gas is down, 2o to increased supplies it appears. didn't that also happen shortly before the '04 elections?

[blazespinnaker]

Re: Is the bubble rotating into equities?

i note that oil/gas is down, 2o to increased supplies it appears. didn't that also happen shortly before the '04 elections?

no kidding. i feel like a massive moron not shorting oil..

[DRumsfeld2000]

Re: Is the bubble rotating into equities?

This is a false market or bear trap as some call it. The big trading houses are forcing the markets up to encourage the small investors in. The small investor will look at the market going up and will hold back and hold back until they convince themselves, with the help of Cramer etc and then jump in. The trap is set. When these 'houses' feel that the time is right and that they have made enough to give them a decent profit or to cover most previous crap investments they will all act together and dump the market: this starts to happen in Q4 2006.

Be a wise investor and try and avoid ringing your broker. When this market goes it will go big time. Have some patience and you will have a great buying opportunity.

[blazespinnaker]

Re: Is the bubble rotating into equities?

Oh, we might be heading for a recession, but if we see huge money growth to keep from dipping into deflation we may find the world follow suit and stocks become a great hedge against inflation.

You could invest in Gold, of course, but that never makes sense to me. The only way to buy gold is to buy it physically but then you have to deal with storage and tax implications, not to mention the volatillity of precious metals is very very painful.

[blazespinnaker]

Re: Is the bubble rotating into equities?

Anyways, full disclosure, I'm 90% in canadian cash. I like to spend all my time trying to prove myself wrong though, it's the only way I feel secure about my investments.

[Jim Nickerson]

Re: Is the bubble rotating into equities?

Anyways, full disclosure, I'm 90% in canadian cash. I like to spend all my time trying to prove myself wrong though, it's the only way I feel secure about my investments.

It seems you are only making a 90% vs. full disclosure. Previously noted somewhere in these fora you made similar statements, and I wondered for months why would this guy, blazespinnaker, be 90% or so in Canadian dollars, and then at some point you disclosed you were Canadian. So 90+% disclosure is you are a Canadian with 90% of your holdings in your cash.

What doesn't make sense to you about investing in the GLD, IAU ETF's?

[blazespinnaker]

Re: Is the bubble rotating into equities?

It seems you are only making a 90% vs. full disclosure. Previously noted somewhere in these fora you made similar statements, and I wondered for months why would this guy, blazespinnaker, be 90% or so in Canadian dollars, and then at some point you disclosed you were Canadian. So 90+% disclosure is you are a Canadian with 90% of your holdings in your cash.

What doesn't make sense to you about investing in the GLD, IAU ETF's?

Well, if I was american, there'd be no way in hell I'd be in 90% cash

[blazespinnaker]

Re: Is the bubble rotating into equities?

I see gold as an insurance against fiat currencies going bust.

If fiat currencies go bust and everyone tries to cash out their GLD (how would you even do that, anyways?) .... well, I'm not sure I want to be there when that happens.

Anyhow, I believe taxation on GLD is annoying as well. I think JK has some suggestions about how to get around that, but then I think you're just generally investing in precious metals which is a lot different than buying gold coins.

[bart]

Re: Is the bubble rotating into equities?

Bart has also indicated that Bernanke was providing additional liquidity via Repos and TIO. This "hot money" has found its way to the equities, hence the current rally. This may be politically motivated to paper over the economic dislocations we face until after the election. The PTB deign to keep us dumb fat and happy -at least until the votes are counted.

And, for what its worth, its both end of quarter and the 'pumping' looks to have peaked at least temporarily... and as always DYODD and YMMV.

[Jim Nickerson]

Re: Is the bubble rotating into equities?

And, for what its worth, its both end of quarter and the 'pumping' looks to have peaked at least temporarily... and as always DYODD and YMMV.

I know "do you own due diligence" but what is YMMV: your mother must venerate?

Seriously, what?

[bart]

Re: Is the bubble rotating into equities?

I know "do you own due diligence" but what is YMMV: your mother must venerate?

Seriously, what?

Sorry, I guess my age betrayed me here. Its an acroynm mostly from the '70s when car mileage started to become a big issue after the '73-4 OPEC crisis.

It stands for Your Mileage May Vary.